GETIDA FBA reimbursements helped our client recover over $150,000 in Amazon reimbursements.
Wouldn’t you love to have an extra $100,000 for your Amazon FBA Business? Better yet, what about $151,000 or more?
You’re likely not shaking your head saying no!
For one of our clients, that is exactly what took place, and we want to share with you how we achieved this large-scale recovery.
Also, with exits a hot button in the Amazon FBA world, there is a lot of buzz about the value of an FBA Business.
Amazon consultants are abuzz with how to increase value by spending more money, time, and effort on such things as marketing, influencing, branding, etc. Maximizing available FBA reimbursements is one of the easiest ways to increase the overall valuation of an Amazon business.
Here is a case study of how an effective recovery of FBA reimbursements can potentially help an exit process.
The Viability of the Business
This Amazon FBA business generated $18 million in revenue per year, selling on Amazon alone.
The company grew to a sizeable operation and leveraged great marketing and a robust business framework to see this type of growth.
In terms of Amazon, the client had an exemplary Amazon FBA listing. The images in the listing were high-quality and fell in line with Amazon’s terms of service.
In terms of the organization, they had a healthy business model employing a range of staff and a proper hierarchy, including an executive level in place. Their accounting books were well maintained, and the company had grown at a healthy and stable rate.
Preparing the Amazon FBA Audit
In this client’s particular case, they were self-managing FBA reimbursements on their own. They hired a virtual assistant versed in Amazon to a certain degree, and this VA submitted their Amazon claims and FBA reimbursements on their behalf.
When GETIDA performed the full Amazon audit going back 18 months, it was noted that many Amazon claims had gone unanswered or were entirely missed in the process. Although the VA had seemingly done a great job managing FBA reimbursements, it was noted that the experienced lacked in knowing which Amazon audit to perform and how to present the Amazon claims to Amazon.
GETIDA performed a full audit of each claim type as follows:
- Inventory Levels
We submitted all necessary documentation on the client’s behalf to complete each Amazon claim, and we filed the Amazon FBA reimbursements.
Results of the Amazon Audit
GETIDA found that out of roughly 318,00 units of inventory, almost 9,000 units were affected by a discrepancy. Of those 9,000 units, GETIDA was able to provide reimbursement for 3,634 units of inventory.
That’s nearly 3% of this client’s inventory!
GETIDA recovered $151,172.59 in FBA reimbursements on the client’s behalf.
How Much Did the Gross Profit Increase?
Here’s the profit breakdown:
Gross Profit before using GETIDA:
Recovered FBA Reimbursement:
Gross Profit After using GETIDA:
If we break down the increase in gross profit, it equates to nearly an 11% increase in gross profit.
Our client was thrilled with the results.
The Impact of a Profit Increase of Nearly 11%
To increase the valuation during an exit for an Amazon business, Amazon sellers can use a solution like GETIDA to effectively increase profit and use it to reach a higher value for the business and have a healthy payday during an exit.
You may not have been aware of the impact FBA reimbursements could potentially have on your exit plan or profit margins. If you’re able to increase cash flow at the time of your exit, you may be able to increase your valuation significantly.
Have an exit strategy built from the time you begin your Amazon FBA business journey. While your exit strategy may change and evolve, it’s best to understand what the requirements are in the sale of your business early on.
Make great efforts to have a superior product, a stand-alone brand, and a fully functioning business internally. These factors combined can help keep a healthy business framework in place, which investors may look for.
Are you thinking of selling your Amazon FBA business? Get $400 in free FBA Reimbursements.